How to prevent online identity theft: essential tips and strategies for protecting your personal information

The advancement of technology provides unique opportunities for complex cybercrimes to occur. The rise of the internet extends traditional crimes to online offenses and creates new types of criminal activity. Since most work nowadays is done online, personal data can be easily obtained by gaining unauthorized access to essential network machines like routers, switches, and network servers.

By acquiring personal information, cybercriminals can then utilize it for identity fraud purposes. Remaining vigilant and taking proactive steps to protect personal information is key to avoiding financial losses and safeguarding your online identity.

To help you better understand identity theft and how to enhance personal data safety, I’ve prepared a list of steps you can take to prevent online identity theft (OIT) and what you can do if you become a victim of this type of cybercrime.

Understanding identity theft

There’s a lack of consensus on defining online identity theft. Some scholars and government organizations consider it to be an unlawful taking of information even if cybercriminals don’t use it against you. However, the term usually refers to the unauthorized abuse of another person’s identifying information.

Essentially, online identity theft is an act of online fraud and crime. It involves duplicating digital information or hijacking of online accounts to commit identity fraud against individuals or businesses.

Research shows that online identity theft is one of the fastest-growing crimes. For instance, scholars estimate that in the US alone, more than 34.2 million people over the age of 16 will become victims of OIT at some point in their lives. Meanwhile, statistics reveal the rise in online ID theft, with over 500,000 reported cases in the US in the first half of the year alone.

With data obtained during identity theft, cybercriminals can open bank accounts or issue credit cards, apply for loans or government benefits, take over social media accounts, impersonate users, and order goods and services.

The damage done by identity theft is far-reaching, both in monetary and nonmonetary losses. Businesses often face irreversible reputational damage due to identity theft incidents, operational disruptions, and legal liability for failing to protect data. Meanwhile, private individuals can experience monetary losses and emotional distress. Additionally, there are legal issues involved, and the process of recovery requires both time and effort.

How to prevent identity theft online

Identity theft prevention is vigilance and taking all possible preventative steps to maximize security. To avoid becoming a victim of online identity theft, you should take precautions and implement safety measures to protect yourself.

Use strong passwords

If you use an unsecured login or recycled password, your identity and personal information becomes vulnerable to cyberattacks. A password that is easy to guess or has appeared in previous data breaches puts your security and accounts at risk.

Start increasing your resistance to identity theft attempts by enhancing your password strength:

• Create a strong password. Use uppercase and lowercase letters, numbers, and symbols. Do not reuse the same password twice; make sure your password is different for each account you create. Twelve-character-long passwords are considered strong, but you may opt for 14 characters or more.
• Secure your password. Do not write it down in your notebook or on a sticky note; don’t share it with others. Instead, choose a trusted and reliable password manager that is credible regarding encryption and can generate strong passwords.

Enable two-factor authentication

Two-factor authentication exponentially increases security and minimizes the chances of unauthorized access. Once you enable two-factor authentication, whenever you try to log in to your application or service, it requests that you confirm the attempt to log in through a third-party application. Essentially, even if your password is compromised and someone is trying to log into your accounts, access is not granted without the second form of authentication.

Be cautious with personal information

Sharing personal information such as full name, address, or phone number makes you vulnerable and more susceptible to identity theft. Cybercriminals can collect and use data to impersonate you online or access your accounts. Moreover, real-time updates about your whereabouts or sharing location tags can expose you to real-life crimes and victimization.

Protecting your identity online

Staying vigilant and protecting your online identity is crucial to avoid identity theft. It’s more than introducing security measures. You must monitor your accounts, proactively manage your digital identity, and be conscious of your digital footprint.

Regularly monitor your accounts

To protect your online identity, regularly monitor your accounts to quickly identify suspicious activity or unauthorized transactions. Should you notice any suspicious activity or unauthorized transactions with your accounts, do not hesitate to contact relevant institutions. By notifying them of possible fraudulent activity, they can immediately take action and investigate the incident.

Don’t hesitate to take action if you notice anything unusual. Swift action can prevent further damage in the case of online identity theft, and many businesses nowadays have fraud departments.

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Use secure connections

Wi-Fi networks accessible to the general public are not safe. Vulnerabilities and the risk of man-in-the-middle attacks make it easy for cybercriminals to intercept data transmitted over these connections. That’s why you should make sure to use only trusted networks.

If you must use public networks, it’s best to prevent eavesdropping by implementing security measures, such as a VPN. It encrypts an internet connection and creates a secure tunnel for data. Malicious hackers have more difficulty accessing your information or intercepting communications between you and the websites you visit.

Educate yourself on phishing scams

Phishing attacks take various forms, each with unique tactics and targets. Understanding these multiple techniques is crucial for developing effective countermeasures. Email, spear, and voice phishing attacks are among the most common. There are also website spoofing and whaling methods. Make sure to open only trusted links and inspect any anomalies in the URLs sent to you via different means of communication.

Steps to take if you become a victim

If you’ve fallen victim to identity theft, it’s best to act swiftly. Even if you suspect that unauthorized activities have taken place without much evidence, don’t take it for granted and take all possible steps to prevent potential damage.

• Report and close compromised accounts. If you know which accounts have been tampered with, it’s best to contact the companies and their support to close them.
• Contact local authorities. By filing a report with local law enforcement, you can get official documentation confirming your status as a victim of identity theft. It tremendously helps when dealing with creditors, credit bureaus, and other institutions which require documentation and proof that your personal information has been compromised.
• Freeze your credit. Once you free your credit, you restrict access to credit reports, making it nearly impossible for cybercriminals to further exploit your personal information. Once you resolve the matter, you can unfreeze your credit and apply for new credit or loans.

Conclusion

Online identity theft is a rapidly growing crime. Through phishing, social engineering, malware, or data breaches, cybercriminals exploit personal information to commit fraud. Then, malicious hackers misuse stolen data for credit card fraud, impersonation, or opening unauthorized accounts, causing monetary loss, emotional distress, and reputational damage to individuals and businesses.

As scary as it sounds, online identity theft is preventable. To safeguard yourself against cyberthreats, use unique and strong passwords, monitor your accounts, enable two-factor authentication, and avoid oversharing personal information online. If you become a victim of online identity theft or suspect that your accounts have been tampered with, act quickly – report fraudulent activity, freeze credit, and contact local authorities for further assistance in resolving the matter.